Keep future options open with powers of appointment

A power of appointment is an important tool that gives an estate plan flexibility to react to changing situations, because it gives the “holder” of the power — often a beneficiary — the ability to decide how, when and to whom specified assets in a trust or estate will be distributed. This article explains the distinction between a general and limited power of appointment, along with the tax implications. A sidebar explains how a creator of an irrevocable trust can use a limited power to authorize a family member or other trusted person to transfer assets to the creator, as well as to the trust beneficiaries.
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A trust that keeps on giving — Create a dynasty to make the most of today’s exemptions

A dynasty trust can extend estate tax benefits for several generations, and perhaps indefinitely. It can protect wealth from gift, estate and generation-skipping transfer (GST) taxes and help leave a lasting legacy. And, with today’s higher lifetime gift and GST tax exemptions, a dynasty trust is all the more powerful. This article shows how a dynasty trust can be beneficial under particular scenarios, and how to enhance its benefits.
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Charitable IRA rollover: A limited time offer

Last year’s tax relief legislation extended several expiring tax breaks, including tax-free treatment of charitable IRA rollovers — formally called “qualified charitable distributions” — by taxpayers age 70½ or older. But taxpayers have only until the end of 2011 to take advantage of this break. This article discusses charitable IRA rollover requirements and the circumstances under which a rollover may (or may not) be advantageous.
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Estate Planning Pitfall — You have a living trust but no will

Many people mistakenly believe that if they have a living trust — also known as a revocable trust — they don’t need a will. After all, a primary purpose of a living trust is to avoid probate and ensure that one’s wealth is distributed quickly and efficiently after death. But even for those with a living trust, a will serves several important purposes, which this short article discusses.
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